But Citigroup’s Will Randow and Thomas Insalaco see too much good news priced into the homebuilder sector already, a place where PulteGroup (PHM) is up 84% on the year and Toll Bros. (TOL) is up 47%. The reason: Multiples are already back to the bubblicious levels of 1999-2006, at least on a price-to-tangible-book-value basis. The stocks aren’t jumping on favorable data lately. And builders typically lose steam in the summer, when the data slows.

“We expect homebuilder stocks to correct post the 55% YTD (avg) run,” they write this morning in a client note. “We believe investors who pursed the ~$30B in total US builder market caps and pushed stocks higher YTD are starting to fade,” they continue.

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JULY 31, 2012 9:53 A.M.

analystsareidiots wrote:

always late on scene.or otherwise want the movement so as to suit their big clients interest

JULY 31, 2012 11:53 A.M.

Dave wrote:

Why would Citigroup keep some of the worst analysts around who have no practical knowledge of the industry and who always miss in their stupid predictions for stocks? All they are trying now is to try to be the heroes "if" the housing industry gets worse, but only "if". I think they must have been hiding in caves for the last 6 monthis.

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